According to IIA guidance, which of the following individuals should receive the final audit report on a compliance engagement for the organization's cash disbursements process?

• A.The accounts payable manager, purchasing manager, and receiving manager.
• B.The accounts payable manager, chief financial officer, and audit committee.
• C.The accounts payable supervisor, controller, and treasurer.
• D.The accounts payable supervisor, accounts payable manager, and controller.

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According to IIA guidance, which of the following accurately describes the responsibilities of the chief audit executive with respect to the final audit report?
1. Coordinate post-engagement conferences to discuss the final audit report with management.
2. Include management's responses in the final audit report.
3. Review and approve the final audit report.
4. Determine who will receive the final audit report.

• A.1 and 4
• B.2 and 3
• C.1 and 2
• D.3 and 4

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Which of the following is not a common feature of cumulative preferred stock?

• A.Priority over common stock with regard to assets.
• B.Priority over common stock with regard to dilution of shares.
• C.Priority over common stock with regard to dividend payment.
• D.Priority over common stock with regard to earnings.

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An organization decides to take no action on one of its financial risks because the cost of implementing the control outweighs the value of the asset being protected. Which of the following best describes this risk strategy?

• A.Risk acceptance.
• B.Risk sharing.
• C.Risk avoidance.
• D.Risk-benefit analysis.

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A manufacturer is under contract to produce and deliver a number of aircraft to a major airline. As part of the contract, the manufacturer is also providing training to the airline's pilots. At the time of the audit, the delivery of the aircraft had fallen substantially behind schedule while the training had already been completed. If half of the aircraft under contract have been delivered, which of the following should the internal auditor expect to be accounted for in the general ledger?

• A.All completed training costs, and the cost of actual production hours completed to date.
• B.All completed training costs, and 50% of the contracted production costs.
• C.Training costs allocated to the number of aircraft delivered, and 50% of contracted production costs.
• D.Training costs allocated to the number of aircraft delivered, and the cost of actual production hours completed to date.

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